Orbit International Corp. Reports 2025 Third Quarter Results

Rhea-AI Summary

Orbit International (OTC:ORBT) reported third quarter and nine-month 2025 results showing revenue and profitability declines driven by a supply-chain delay and weaker bookings. Q3 2025 sales were $5.785M vs. $8.414M a year earlier; Q3 net loss was $0.875M ($0.26/share) vs. prior year net income $0.558M. Nine-month sales were $15.724M vs. $21.190M; nine-month net loss was $4.317M ($1.30/share). EBITDA, as adjusted, lost $0.508M in Q3 and $3.506M for nine months. Management said a single OPG supply-chain issue delayed ~$1.24M of revenue, costing ~ $620k of profitability and pushing shipment to Q1 2026.

Backlog was $12.7M at Sept 30, 2025 (up from $12.0M Dec 31, 2024). Cash improved to ~$1.3M by Nov 7, 2025; LOC borrowings were $2.475M as of Nov 7, 2025. Management expects $750k of annual SPS cost reductions.

Positive

• Backlog increased to $12.7M at Sept 30, 2025 (+5.8% since Dec 31, 2024)
• Cash improved to approximately $1.3M as of Nov 7, 2025
• Line of credit borrowings reduced to $2.475M as of Nov 7, 2025
• Planned annual cost reductions at SPS of approximately $750,000

Negative

• Nine-month net loss of $4.317M (9M 2024 loss $0.394M)
• EBITDA, as adjusted, nine-month loss of $3.506M
• Q3 net sales fell to $5.785M from $8.414M (≈31% decline)
• Gross margin down to 24.4% for nine months from 32.8% (−840 bps)
• Delayed OPG shipment deferred ≈$1.24M revenue, ~$620k profitability loss
• Book value per share declined to $4.04 at Sept 30, 2025 from $5.34

Third Quarter 2025 Net Loss of $875,000 ($0.26 loss per share) v. Net Income of 558,000 ($0.17 per diluted share) in Prior Year Period

Third Quarter 2025 EBITDA, As Adjusted, was a loss of $508,000 ($0.15 loss per share) v. Earnings of $749,000 ($0.22 per diluted share) in Prior Year Period

Nine Months 2025 Net Loss of $4,317,000 ($1.30 loss per share) v. Net Loss of $394,000 ($0.12 loss per share) in Prior Year Period.

Nine Months 2025 EBITDA, As Adjusted, was a loss of $3,506,000 ($1.05 loss per share) v. a loss of $199,000 ($0.06 loss per share) in Prior Year Period.

Backlog at September 30, 2025 was $12.7 million compared to $12.0 million at December 31, 2024

Supply Chain Issue at Orbit Power Group (“OPG”) Prevents Return to EBITDA, As Adjusted Profitability for Current Third Quarter

HAUPPAUGE, N.Y., Nov. 11, 2025 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTCID Basic Market:ORBT) today announced results for the third quarter and nine months ended September 30, 2025.

Third Quarter 2025 vs. Third Quarter 2024

• Net sales were $5,785,000, as compared to $8,414,000.
• Gross margin was 31.9%, as compared to 36.8%.
• Net loss was $875,000 ($0.26 loss per share), as compared to net income of $558,000 ($0.17 per diluted share).
• Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liabilities (earn-out) and other non-current liability, contingent liability (legal matter) and stock-based compensation (EBITDA, as adjusted) was a loss of $508,000 ($0.15 loss per share), as compared to earnings of $749,000 ($0.22 per diluted share).
  
  

Nine Months 2025 vs. Nine Months 2024

• Net sales were $15,724,000, as compared to $21,190,000.
• Gross margin was 24.4%, as compared to 32.8%.
• Net loss was $4,317,000 ($1.30 loss per share), as compared to a net loss of $394,000 ($0.12 loss per share),
• Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liabilities (earn-out) and other non-current liability, contingent liability (legal matter) and stock-based compensation (EBITDA, as adjusted) was a loss of $3,506,000 ($1.05 loss per share), as compared to a loss of 199,000 ($0.06 loss per share).
• Backlog at September 30, 2025 was $12.7 million compared to $12.5 million at June 30, 2025 and $12.0 million at December 31, 2024.
  
  

Mitchell Binder, President and CEO of Orbit International commented, “After completing and reporting our first half of operating results, which was a challenging period for our Company, we were somewhat optimistic going into the second half of 2025. Delivery schedules were lined up more favorably for our legacy businesses. However, a single supply chain issue undermined a large scheduled shipment for our OPG during the quarter and approximately $1,400,000, scheduled for delivery, has been delayed until the first quarter of 2026. Although the units were substantially complete and our customer paid approximately 89% of the total order, we were unable to recognize revenue of approximately $1,240,000 resulting in an incremental profitability loss of approximately $620,000. Our net loss for the nine months ended September 30, 2025, was $4,317,000 ($1.30 loss per share) compared to a net loss of $394,000 ($0.12 loss per share) for the prior comparable period. EBITDA, as adjusted, for the nine months ended September 30, 2025, was a loss of $3,506,000 ($1.05 loss per share) compared to a loss of $199,000 ($0.06 loss per share) in the prior comparable period."

Binder added, “Our current third quarter operating results were negatively affected by the aforementioned delayed shipment as well as lower sales by our Orbit Electronics Group (“OEG”) inclusive of our Simulator Product Solutions LLC (“SPS”) subsidiary. Our consolidated net loss for the third quarter was approximately $875,000 ($0.26 loss per share) and our EBITDA, as adjusted, loss was $508,000 ($0.15 loss per share). However, exclusive of legal fees incurred in connection with the termination of the former President of SPS, a one-time banking modification fee and the approximate incremental profitability loss at OPG of $620,000 due to a single supply chain issue, our EBITDA, as adjusted would have been income of approximately $195,000.”

Binder added, “Operating results for SPS for the three months and nine months ended September 30, 2025, were adversely impacted by lower sales in the current period, a consequence of reduced bookings in the second half of 2024 caused by contract delays that were eventually awarded in 2025. Prior period revenues during 2024 were positively impacted by higher bookings during the 2023 fiscal year. Bookings were also negatively affected by ongoing opportunities that have not yet finalized in 2025 and certain lost opportunities, primarily due to lack of funding or our customer losing awards to competitors. Bookings for SPS in 2025 have since improved from the second half of 2024. In addition, we had incurred significant infrastructure costs in 2023 and 2024 in order to support SPS’ sales increase since the Company’s acquisition of the SPS business in 2022. At the time of the SPS acquisition, we anticipated the need to invest in infrastructure and internal controls in order to bring SPS up to the standards of a public company. However, after several quarters of personnel and cost increases, we have taken precautionary measures to trim certain costs as we continue to align our organization to support our growth while striving to improve our operating results. Our cost reduction efforts are expected to reduce annual SPS expenses by approximately $750,000.”

Mr. Binder added, “Our sales for the nine months ended September 30, 2025, decreased significantly to $15,724,000 compared to $21,190,000 from the prior year comparable period. This decrease in sales was primarily attributable to significantly lower sales at both our OEG and our OPG although the reduction at OPG was directly attributable to the supply chain issue. As previously mentioned, the lower sales at our OEG were attributable to lower bookings in the second half of 2024 due primarily to contract delays, which are an inherent risk in contracting with the U.S. government and its prime contractors.”

Mr. Binder further added, “Our gross margin for the nine months ended September 30, 2025, decreased to 24.4% compared to 32.8% in the prior year comparable period. The decrease in gross margin during the nine months ended September 30, 2025, primarily reflected significantly lower OEG gross margins due to a reduction in sales which resulted in a higher percentage of overhead and other fixed costs relative to sales. The decrease in gross margin also reflected a slightly lower gross margin at our OPG due to lower sales as a result of the aforementioned supply chain issue.”

Mr. Binder added, “For the nine months ended September 30, 2025, selling, general and administrative expenses were $7,873,000, compared to $7,698,000 during the prior year comparable period, an increase of $175,000. The increase was primarily due to a more than $500,000 increase in SPS expenses, which was partially offset by lower OPG expenses and lower corporate expenses. The increase in selling, general and administrative expenses at SPS was principally due to more than $245,000 of expenses incurred for (i) an outside engineering firm engaged to modify legacy drawings as well as bill of material part identification that was developed prior to the acquisition and (ii) legal fees incurred in connection with the litigation associated with the SPS acquisition and the termination of the former President of SPS. The engineering firm was needed to conform drawing documentation to the actual manufacturing procedures to build SPS products as well as to comply with internal inventory controls. This was in addition to more than $200,000 in engineering fees that were incurred in the fourth quarter of 2024.”

Mr. Binder continued, “Backlog at September 30, 2025, was approximately $12,700,000 compared to approximately $12,000,000 at December 31, 2024, an increase of approximately 5.8%. This increase in backlog is reflective of a general increase in bookings from our OPG and SPS, and despite a decrease in bookings from our Orbit Instrument division during the first nine months of 2025. Our Orbit Instrument division has faced numerous delays on follow-on contracts from one customer which should have added approximately $1,800,000 in bookings to date, but which we hope can be recorded prior to year end. Additional proposals to the same customer, totaling approximately $3,700,000, are expected in the first half of 2026. This total of approximately $5,500,000 in proposals for this division is exclusive of other follow-on proposals to other customers. Contract delays are an inherent part of doing business with the U.S. Government.”

David Goldman, Chief Financial Officer, noted, “At September 30, 2025, our cash and cash equivalents aggregated approximately $159,000 and borrowings under our $4,000,000 Line of Credit (“LOC”) were $3,300,000. However, as of November 7, 2025, our cash and cash equivalents have increased to approximately $1.3 million and borrowings under our LOC have decreased to $2,475,000. Furthermore, during the current third quarter, we renewed our LOC for another year until September 1, 2026. Our book value per share at September 30, 2025 was $4.04, which compares to $4.31 at June 30, 2025 and $5.34 at December 31, 2024. (Note: book value per share does not include any additional value for our fully reserved deferred tax asset.) To offset future federal and state taxes resulting from profits, we have approximately $2.7 million and $0.4 million in available federal and New York State net operating loss carryforwards, respectively.”

Mr. Binder added, “Because our revenues are tied to delivery schedules specified in our contracts, it is often difficult to judge our performance on a quarterly basis. Our operating results for the nine months ended September 30, 2025, resulted from weak bookings in the second half of 2024 that primarily emanated from contract delays. These contract delays have carried over into 2025 and, in particular, have adversely affected our Orbit Instrument division, which has historically been our most profitable business. Although we received some of the contracts during the course of the year, the number of proposals for follow-on business has significantly grown with outstanding proposals from this division totaling $8,700,000 waiting to be awarded. A portion of these awards are expected in the current fourth quarter with the remainder expected in the first half of 2026. Once we begin receiving these awards, we expect that out Orbit Instrument division can record higher revenue and improved profitability, utilizing the operating leverage that is inherent in our business.”

Mr. Binder concluded, “We continue to evaluate the impact of tariff announcements and are evaluating their impact on the cost of our products. We are addressing the tariffs in a number of ways, including a pass through to our customers, adjusting our pricing, negotiating with our vendors or seeking out alternative sources. We’ve been proactive in moving some of our foreign vendors to countries that are not expected to be materially affected by tariffs.”

Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, NY and Carson, CA. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including VPX, COTS (Commercial-off-the-shelf) and commercial power supplies.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including statements regarding our expectations of Orbit International Corp.’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit International Corp. believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International Corp.’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International Corp. and the statements contained in this news release can be found in Orbit International Corp.’s reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit International Corp. claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit International Corp. assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

CONTACT
David Goldman
Chief Financial Officer
631-435-8300

(See Accompanying Tables)

Orbit International Corp.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
			2025				2024				2025				2024
Net sales		$	5,785			$	8,414			$	15,724			$	21,190
Cost of sales			3,940				5,319				11,891				14,250
Gross profit			1,845				3,095				3,833				6,940
Selling general and administrative			2,525				2,524				7,873				7,698
expenses
Interest expense			54				19				106				33
Other expense (income), net			18				(6	)			40				(433	)
(Loss) income before income taxes			(752	)			558				(4,186	)			(358	)
Income tax provision			123				-				131				36
Net (loss) income		$	(875	)		$	558			$	(4,317	)		$	(394	)
Basic (loss) earnings per share		$	(0.26	)		$	0.17			$	(1.30	)		$	(0.12	)
Diluted (loss) earnings per share		$	(0.26	)		$	0.17			$	(1.30	)		$	(0.12	)
Weighted average number of shares outstanding:
Basic			3,332				3,346				3,330				3,345
Diluted			3,332				3,349				3,330				3,345

Orbit International Corp.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
		Three Months Ended September 30,							Nine Months Ended September 30,
			2025				2024			2025				2024
EBITDA (as adjusted) Reconciliation
Net (loss) income		$	(875	)		$	558		$	(4,317	)		$	(394	)
Income tax expense			123				-			131				36
Depreciation and amortization			162				169			501				503
Interest expense			54				19			106				33
Fair value adj-contingent liabilities (earn-out) & other non-current liability			-				-			-				(387	)
Contingent liability (legal matter)			25				-			63				-
Stock-based compensation			3				3			10				10
EBITDA (as adjusted)(1)		$	(508	)		$	749		$	(3,506	)		$	(199	)
EBITDA (as adjusted) Per Diluted Share Reconciliation
Net (loss) income		$	(0.26	)		$	0.17		$	(1.30	)		$	(0.12	)
Income tax expense			0.04				0.00			0.04				0.01
Depreciation and amortization			0.05				0.05			0.15				0.15
Interest expense			0.01				0.00			0.03				0.01
Fair value adj-contingent liabilities (earn-out) & other non-current liability			0.00				0.00			0.00				(0.11	)
Contingent liability (legal matter)			0.01				0.00			0.02				0.00
Stock-based compensation			0.00				0.00			0.01				0.00
EBITDA (as adjusted), per diluted share (1)		$	(0.15	)		$	0.22		$	(1.05	)		$	(0.06	)

(1) The EBITDA (as adjusted) tables presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses EBITDA (as adjusted) to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA (as adjusted) is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity's profitability because it does not include costs and expenses for interest, depreciation and amortization, income taxes, fair value adj.-contingent liabilities (earn-out) and other non-current liability, contingent liability (legal matter) and stock-based compensation. EBITDA (as adjusted) as presented herein may not be comparable to similarly named measures reported by other companies.

		Nine Months Ended September 30,
Reconciliation of EBITDA, as adjusted, to cash flows provided by (used in) operating activities (1)			2025					2024
EBITDA (as adjusted)		$	(3,506	)			$	(199	)
Income tax expense			(31	)				(36	)
Interest expense			(106	)				(33	)
Fair value adj-contingent liabilities (earn-out) and other non-current liability			-					387
Contingent liability (legal matter)			(63	)				-
Stock-based compensation			22					22
Amortization of right-of-use assets			550					474
Net change in operating assets and liabilities			(337	)				(2,048	)
Cash flows used in operating activities		$	(3,471	)			$	(1,433	)

Orbit International Corp.
Consolidated Balance Sheet
	September 30, 2025 (unaudited)			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	159,000		$	1,355,000
Accounts receivable, less allowance for credit losses		3,752,000			3,935,000
Inventories		9,456,000			8,884,000
Contract assets		673,000			643,000
Other current assets		404,000			428,000
Total current assets		14,444,000			15,245,000
Property and equipment, net		968,000			1,192,000
Right of use assets, operating leases		1,958,000			2,297,000
Right of use assets, financing leases		48,000			77,000
Goodwill		3,515,000			3,515,000
Intangible assets, net		2,141,000			2,322,000
Deferred tax asset		-			100,000
Other assets		51,000			53,000
Total assets	$	23,125,000		$	24,801,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		1,650,000			878,000
Accrued expenses		979,000			990,000
Notes payable		49,000			99,000
Lease liabilities, operating leases		794,000			717,000
Lease liabilities, financing leases		41,000			38,000
Contingent liability		1,425,000			1,362,000
Customer advance		93,000			296,000
Line of credit		3,300,000			850,000
Total current liabilities		8,331,000			5,230,000
Notes payable, net of current portion		51,000			83,000
Lease liability, operating lease		1,248,000			1,678,000
Lease liability, financing lease		11,000			41,000
Total liabilities		9,641,000			7,032,000
Stockholders’ Equity
Common stock		352,000			351,000
Additional paid-in capital		17,202,000			17,171,000
Treasury stock		(1,224,000	)		(1,224,000	)
(Accumulated deficit) retained earnings		(2,846,000	)		1,471,000
Stockholders’ equity		13,484,000			17,769,000
Total liabilities and stockholders’ equity	$	23,125,000		$	24,801,000

FAQ

What were Orbit International (ORBT) Q3 2025 revenues and net income?

Q3 2025 net sales were $5.785M and net loss was $0.875M (loss $0.26/share).

Why did ORBT report a weaker Q3 2025 EBITDA, as adjusted?

A single OPG supply-chain issue delayed ~$1.24M of revenue, costing ~$620k in profitability and reducing EBITDA.

What is Orbit International's (ORBT) backlog and cash position as of late 2025?

Backlog was $12.7M at Sept 30, 2025; cash rose to ≈$1.3M by Nov 7, 2025 with LOC borrowings of $2.475M.

How large was Orbit’s nine-month 2025 sales decline and margin impact?

Nine-month sales fell to $15.724M from $21.190M and gross margin fell to 24.4% from 32.8%.

What near-term improvements does ORBT cite to restore profitability?

Management cites expected SPS cost reductions of ≈$750k, backlog awards, and the rescheduled OPG shipment in Q1 2026.